Apple CEO, Tim Cook dinner, testifies earlier than the Senate Homeland Safety and Governmental Affairs Committee’s InvestigatiGetty ImagesIf Apple’s arguments prevail, a court docket might rule that its estimated 64% of U.S. smartphone share is not a monopoly, or that its conduct wasn’t unlawful, giving Apple new instruments to struggle off future regulation.However earlier than any of that occurs, we’ll doubtless see years of authorized wrangling, throughout which Apple will probably be compelled to defend its enterprise in public, distract its executives with authorized conferences, produce inside paperwork for the federal government and doubtlessly face dangerous headlines that would harm its model or picture.The DOJ’s lawsuit nonetheless must be assigned to a choose. Within the quick time period, Apple might ask for a change of trial location away from New Jersey, and it’ll doubtless ask to dismiss the case solely.All these steps take various quantities of time, and it is lifelike the trial will probably be scheduled for 2025, and the attraction will not wrap up till 2027, relying on which choose is assigned the case, mentioned William Kovacic, director of the Competitors Legislation Heart at George Washington College.Usually, firms accused of antitrust violations like Apple like to pull out the trial, mentioned John Newman, a professor of regulation on the College of Miami and a former DOJ legal professional.”Usually, defendants love to pull their heels endlessly,” Newman mentioned. “Is the choose going to go along with what the defendant proposes, which is inevitably years and years, tons and tons of discovery? Drag it out endlessly? Or they will truly step up and attempt to management that?” he continued.For instance, Google was sued by the DOJ in an identical case in October 2020, and it took practically three years earlier than it went to trial. Cures have not been determined and it hasn’t gone by way of appeals. The DOJ case towards Apple was impressed by a historic case towards Microsoft filed in 1998. It went to trial later that yr and an attraction was determined by 2001.Just like the Microsoft trial, the Justice Division lawsuit towards Apple is making an attempt to erect a brand new landmark choice for antitrust within the U.S., principally by specializing in Apple’s whole ecosystem, not only a product, and whether or not the way it features represents anti-competitive conduct.In a press release supplied to CNBC on Thursday, Apple mentioned that the lawsuit “threatens who we’re” and that it might harm its capacity to make aggressive tech merchandise.Apple gives extra particulars about why it would not like this type of litigation in its SEC filings. The corporate says that when legal guidelines and laws change, together with antitrust litigation, it has to spend cash to conform. “Imposed” adjustments can harm buyer demand, in keeping with the submitting, and when legal guidelines or laws change, it creates uncertainty for Apple.One other problem for Apple could also be {that a} massive, public trial like this one competes for govt time and a spotlight, and extra choices inside Apple might must undergo authorized assessment earlier than going ahead.Corporations going through antitrust circumstances usually must loop staff who don’t have anything to do with trials into conferences, to kind by way of firm paperwork, or assist information how the corporate will current proof or technical arguments, Kovacic, a former FTC commissioner, mentioned.”In previous main antitrust circumstances, the actual hazard for the corporate is that the main focus of consideration turns into profitable the antitrust lawsuits as an alternative of profitable clients and doing all of your job,” Kovacic mentioned. “It slows you down. It is an actual drag.”For Apple, it is not simply the DOJ swimsuit, but additionally new laws in Europe, and investigations in different nations all over the world that it has to cope with.The U.S. authorities hasn’t mentioned what it desires Apple to do to repair its allegations, however its preliminary submitting on Thursday left the matter open, with a broad request for total treatment.One risk consists of forcing Apple to open the iPhone to third-party shops prefer it has in Europe. Lots of the DOJ’s different allegations, like Apple’s alleged restrictions on third-party smartwatches and “tremendous apps” do not have shut current parallels in different nations or markets. The DOJ might additionally discover cures that intention to reorient the complete expertise business or future merchandise.”If and when this factor will get to trial, I’d anticipate that it’s going to not simply be about smartphones, though that is the core of the story. That is actually a case about the way forward for sensible units,” Newman mentioned.Apple might, because it has prior to now, select to preemptively make adjustments or tweaks to focused merchandise to go off extra scrutiny. For instance, in January, Apple partially opened its App Retailer to cloud gaming providers, one of many key sorts of rivals that the Justice Division alleged that Apple cuts off.Authorities legal professionals will request inside, confidential Apple paperwork to bolster their case in a course of referred to as discovery. Apple’s enterprise companions may get requests to point out the federal government their very own confidential paperwork. Usually, firms worry discovery, as a result of it is unclear what’s going to flip up, and Apple is especially secretive about its inside documentation and technique.Paperwork unearthed by way of discovery are sometimes posted publicly in the course of the trial, exposing personal deliberations.The federal government will doubtless transfer to depose Apple’s executives, together with CEO Tim Cook dinner, and even name them to the witness stand in the course of the trial. Cook dinner took the stand throughout a current antitrust trial towards Epic Video games, for instance.However govt depositions or testimony can nonetheless be dangerous for expertise firms, particularly if executives can not management their egos — former Microsoft CEO Invoice Gates was famously petulant and confirmed utter contempt for the method throughout a videotaped deposition by David Boies in 1998 that was performed in the course of the trial.”A lesson that the Gates deposition expertise taught is that should you’re a CEO, there’s a actual artwork and ability to doing a great deposition,” Kovacic mentioned. “It requires you to suppress a few of your ‘Grasp of the Universe’ impulses for the sake of doing a great job, and on this case, listening very fastidiously to the teaching of your legal professionals.”Apple and the DOJ might additionally come to a settlement, the place Apple makes some adjustments and the federal government drops the swimsuit earlier than additional discovery or depositions. Nonetheless, there aren’t any public indicators of reconciliation.Apple declined to touch upon Thursday when requested if there had been settlement talks.Don’t miss these tales from CNBC PRO: